SEASON IN WOOL.

Shannon News, 30 September 1924, Page 4

SEASON IN WOOL.

MOST SUCCESSFUL EVER RECORDED. BRIGHT PROSPECTS FOR COMING PERIOD. The phenomenal prices which were ‘Obtained by. the New Zealand ■ grower during the 1923-24 season are still fresh in the memory of those con-’ cerned in the industry,' and a review of the whole period, with a glimpse towards the . coming season will be of topical interest at the present time. The position was comprehensively traversed to a pressman yesterday by ■ one of the Dominion’s best authorities .on the question, who occupies a position of authority .in wool classing, but iWho, for obvious reasons, declined to i append his name to the interview. Keen Competition and High Prices. “The 1923-24 selling season,” he said, “will pass into review as being one of ’the most satisfactory to wool growers in the history ,of New Zealand wool sales. . .

“A feature of the season has been the very keen competition experienced for ovpry quality and class of wool, values for every sort being considerably above even ■ commandeer prices. The; increase in competition for crossbreds has been very noticeable and this class experienced a very active demand, with a considerable increase in values. The disparity in costs between coarse and. fine wools was not nearly so marked as was the case the previous selling i season. “It is very evident that wool growers are viewing with favour (peal selling, in preference to. shipping for sale on the London, market, and the, experience, of brokers and growers during reecnt years has fully demonstrated the wisdom of this course. ‘ Wool values realised at the opening sales exceeded even the most sanguine expectations, and each subsequent sale showed a steady appreciation in prices, until at the end of the season they were at the highest point with the demand still unsatisfied. New records were established this season, both Merino and half bred wools selling up to 33d per lb. Overseas mills were keen competitors and it is noticeable each year that a greater number of overseas manufacturers are being represented at New Zealand sales. The mainstay of the market during the present season has been the phenomenal demand on Continental account, which was in evidence throughout the season. America Holding Back. . “Bradford during the first half ' of the season did not operate so freely,' but during the latter half they realis’ed that values were very firm, and consequently if they wished to buy they would have to purchase at prevailing values. The demand on behalf of local firms and Australian houses was also remarkably keen, but there was a distinct falling ok on American and Japanese account. This, in the latter case, was no doubt due to the earthquakes destroying a number of the leading hulls, and also owing to the difficulty in arranging credits. It was not expected that America would be a large purchaser during the. season just closed. Owing to exchange rates ruling so greatly in'her'favour during the previous’ season, she bought considerably more than her requirements and faced the opening of the present Reason with ’ considerable stookis of wool on. hand and consequently her purchases did not amount to the same quantity as in previous seasons. “At the end of March, 1924, the last of the B.A.W.R.A. stocks were disposed of, and the huge mountain of wool, that, during the past few years has caused considerable concern to the trade, has finally disappeared. “The clip was hardly so well grown as in previous seasons, mainly owing to the very wet winter experienced. Wools opened up light in condition and of fine quality, but were thinly grown and of tender staple. Care in Classing Essential.

“The classing of wool by individual growers has shown a marked improvement, and whilst there is still room for improvement, in many instances in the get up of the clips, it is satisfactory to know that growers are realising that to secure the best return, they must pay some attention to the classing of their 1 wool. As is usualy the case, many lots of superior well grown wools, were indifferently classed, and consequently.: did not meet with the competition from buyers they would otherwise have done. In many cases, in order to secure the real value of these, wools, it was necessary to reclass them in store. It is at all times advisable for a grower, if he is to class his wool, to ask his broker to do it for him. Brokers employ expert men to do this work, , and as they handle a considerable quantity of wool each season, they are more expert than the grower who only classes his clip once a year.

“Tha benefits derived from binning and interlotting small clips were evident throughout the season. Wools treated in this manner met with extreme competition and it has been amply demonstrated that buyers appreciate the action of brokers in submitting for sale, large lots of “grouped” wools. During the main sales of the season, it is practically Impossible for every buyer tovalue “star” and the grouping of these small lots results in every bale of wool being carefully valued. ' ; Prospects for Gotming Season Bright. * “The position of wool values to-day is on an extremely sound basis, and growers may confidently look forward to at least a .maintenance of, if not an improvement on the parity of prices ruling last season. “At the present moment, the world’s stocks of. raw materials are very much less than at any time since

the close of 1914, and although opinr 4 ipns may differ as to the exact quantity last season's clip which will go into consumption before the next selling season, it is readily agreed by all liersons who have studied the position, that there will not be enough wool available next season to satisfy a demand equal to that of the past two years.

“The year 1921 was considered by manufacturers to be a period of very low consumption, and it appears evident that the available supplies for the ensuing season will be appreciably short of the quantity consumed during that year. A recent estimate of the world's consumption is on an average of 2,850,000,0001b5. and the available supply for last season was 2,511,000 OOOlbs.

“It is not expected that during the coming season any material increase will be shown in the world's production of wool, and as a matter of fact, it will be some considerable, time—probably at least five years— 1 before the number of sheep in the world will, approximate those of prewar. figures. From this it will be readily seen that the outlook for wool values for the coming season is on a distinctly sound basis, and ,it is doubtful if the prospects fOr growers has ever been more favourable. “With the disposal of the last of! B.A.W.R.A. , stocks at the x end of March this year, It will be realised that the available surplus of ; stocks accumulated during the war has gone into consumption, and judged by the average consumption of the world during the last few years, it is evident that the trade are. deeply concerned as to whether a sucient quantity of the raw material will be available to meet the worldfs needs. Germany on the Market.

“During the past few days newspaper, reports indicate a very favourable tone-in connection with Continental' Exchange, rnd with the establishment of a satisfactory financial condition in Germany, it is evident that country will 1 be a very large purchaser of the. raw material during the coming season. Competition, from Germany for. the past season was remarkably keem a.rl it was a matter oC -wonder to the trade, considering the difficulty of finaica, Imw they were able to lift such a huge quantity 'of wool. With the removal of tins disability supported by the low cost of manufacturing the raw material, they will be very favourably situated during the coming season “The position to-day from the manufacturer's point of view is. somewhat different to that of other . boom periods. In the past, the manufacturer was able to pass on to the consumer without any difficulty the increase in price of the manufactured article, but at the present moment he is faced with having to pay an extreme price for the raw material which is not commensurate with the price \ at which he is able to sell the product. This, no doubt, is a matter of only temporary moment, but during the last few series of London sales, it certainly had a deterring influence on present, day values. “Bradford during the last series of London wool sales was in rather a pessimistic frame of mind for the first few days of the series, but later cables indicate a general recovery and prices to-day show no falling off as compared with previous series. “The eutlook for, wool appears to be: on ;a very sound, basis, and wool growers, ican confidently look forward to a firm and buoyant market for the coming, season.” ,